PremiumSurf Unlimited will offer users 2.5Mpbs at a flat rate of S$198 per month while the SuperSurf Unlimited package costs S$118 per month for 512Kbps.
"For those who apply by the end of the month, they will enjoy free registration, free installation and one month free subscription...and if the demand is good we may extend the promotion period," a SingTel spokesperson said.
Two weeks ago, Nasdaq-listed regional Internet Service Provider (ISP) Pacific Internet (PI) introduced Broadband Unlimited, a new Asymmetric Digital Subscriber Line (ADSL) access plan that provides toll-free, unrestricted broadband access of up to 512kbps.
All subscribers who sign up in March will get 50 percent off the regular monthly rate of S$149.90 for 12 months, PI said. For existing subscribers, PI is offering a promotional rate of S$65.90 per month (for 12 months) if they subscribe this month. Unlimited Broadband will include a 5MB email account and unlimited 56kbps dial-up.
When asked if SingTel's new unlimited broadband package was to counter PI's offer, SingTel Multimedia CEO Andrew Buay said: "No...we provide a different proposition to our customers, which includes value added services, content...besides, our competitors pricing is for a limited period only...after which customers have to pay the full price."
To this, a PI spokesperson said: "The latest plans by SingTel are merely adaptations of our own Broadband Unlimited Plan, and we are pleased that the unlimited broadband plan we are promoting remains competitive despite SingTel's latest announcements."
With competition in the broadband industry heating up, could this be the beginning of a price war?
SingTel's Buay does not want to follow this path. " A price war is not the way to go...cost savings should be transferred to the customers...that's how you bring the prices down and not by acquiring customers."
"In the US and Korea, broadband companies which went through a price war last year are not doing that well (today)," Buay added.
On targets, he said: "At present, there are close to 40,000 SingTel Magix subscribers and we expect to convert 20 to 30 percent of our 300,000 dial-up subscribers."
"Some analysts have predicted that the number of broadband users in Singapore will grow to a range of 230,000 and 270,000...and we hope to maintain a minimum 50 percent market share in the sector," Buay added.
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